Episode 1 – Basic Investment Products

In this episode we will discuss about GICs/CDs, Bonds, Stocks, Mutual Funds and ETFs.

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks.

A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, and credit unions. CDs are similar to savings accounts in that they are insured “money in the bank” and thus virtually risk free.

A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.

A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.

A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets.

An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange.

One Reply to “Episode 1 – Basic Investment Products”

I wish to express thanks to this writer just for bailing me out of this particular issue. After looking through the the web and seeing tricks which were not helpful, I assumed my entire life was done. Being alive without the solutions to the problems you’ve sorted out by way of your entire blog post is a crucial case, and the ones which could have adversely affected my entire career if I hadn’t come across your web blog. That natural talent and kindness in dealing with all the stuff was helpful. I’m not sure what I would’ve done if I had not encountered such a subject like this. I am able to at this time relish my future. Thanks a lot so much for this professional and sensible guide. I will not hesitate to propose your web page to anybody who would need assistance on this area.